Present market condition

The current market in Singapore appears to be overbought technically. This applies to stock market across the world as well. In the short term, we can expect market to consolidate and drop slightly. From my analysis, prices should not drop too much. The stock prices has supercede the fundamental of the company earning potential in the short term. Therefore, a correction in stock price is inevitable unless there's further good news (example, second stimulas package) to boast the stock price further.

Thus, be very careful when you attempt to buy any stocks for this week. Basic commodities and energy related should be falling soon. There should be good buying opportunities on these counters once it start falling but you must monitor the charting till there is a firm case of up trend momentum. Remember to use the techniques which i have shared in my previous posting to identify high probability trading opportunity.